Canadian securities regulator the British Columbia Securities Commission (BCSC) announced that has added to its Investment Caution List unregulated binary options broker TorOption, which is owned and operated by Smart Choice Zone LP (together, the Parties).
TorOption claims to be based in Glasgow, Scotland, and provides an online binary options trading platform, operating at www.toroption.com.
A binary option is a type of option whose payout depends on whether the underlying asset (such as a stock, a commodity, a currency pairing, etc.) increases or decreases in value. Options are considered to be securities under British Columbia’s securities legislation.
BCSC recently became aware of TorOption and that a British Columbia (BC) resident was able to open a trading account with TorOption.
The Parties are not registered to trade in, or advise on, securities or exchange contracts in BC.
BCSC urged BC residents to exercise caution when dealing with firms that are not registered to trade or advise in BC.
The official warning can be seen here.